Gurugram RERA Levies Rs 50 Lakh Penalty on Mall Project Promoter for Norm Violation

None

In a decisive move to enforce real estate regulations, the Gurugram Real Estate Regulatory Authority (RERA) has imposed a hefty fine of Rs 50 lakh on Coral Realtors Private Limited. The penalty comes as a result of the real estate promoter's failure to register its ongoing mall project with the Authority, coupled with its continuation of advertising, marketing, and the creation of third-party rights in the project prior to registration. This act was identified as a clear contravention of Section 3 of the RERA Act, 2016, which mandates the registration of a real estate project before any third-party rights are established.

A Strict Stance on Regulation Violation

The imposition of the penalty highlights the Authority's strict stance on adhering to the RERA Act's provisions, aimed at protecting the interests of buyers and ensuring transparency and accountability in the real estate sector. "Therefore, the Authority decides to impose a penalty of Rs 50 lakh on the realtor. The registration certificate will be issued only after receipt of the penalty," stated the REA order, underlining the consequences of sidestepping regulatory requirements.

Implications for the Real Estate Sector

This enforcement action by the Gurugram RERA serves as a stern reminder to all real estate promoters about the critical importance of compliance with regulatory norms. It also reassures potential property buyers about the mechanisms in place to safeguard their interests. The move is expected to prompt better compliance practices across the sector, thereby enhancing the overall trust and integrity of the real estate market in Gurugram and beyond.

A Call for Compliance and Transparency

The Gurugram real estate sector, known for its dynamism, is also familiar with the challenges of regulatory adherence. This penalty serves not just as a punitive measure but as a call to all stakeholders in the real estate industry to prioritize compliance, transparency, and accountability. As the market continues to evolve, such regulatory actions are crucial for maintaining a balanced and fair real estate ecosystem, conducive to sustainable growth and consumer protection.